Iowa Supreme Court Attorney Disciplinary Board v. Curt N. Daniels

Supreme Court of Iowa·Decided January 20, 2023·No. 22-1646·Published

Opinion

IN THE SUPREME COURT OF IOWA No. 22–1646

Submitted December 14, 2022—Filed January 20, 2023

IOWA SUPREME COURT ATTORNEY DISCIPLINARY BOARD, Complainant, vs. CURT N. DANIELS, Respondent.

On review of the report of the Iowa Supreme Court Grievance Commission.

The grievance commission recommends six-month suspension for ethical violations. LICENSE SUSPENDED.

Waterman, J., delivered the opinion of the court, in which all justices joined.

Tara van Brederode, Allison Schmidt, and Alexis Grove, for complainant.

Curt N. Daniels, Chariton, pro se.

WATERMAN, Justice.

In 2013, we publicly reprimanded Iowa lawyer Curt N. Daniels for frivolous filings in protracted litigation against a personal adversary. Iowa Sup. Ct. Att’y Disciplinary Bd. v. Daniels, 838 N.W.2d 672, 673–74 (Iowa 2013). Nevertheless, Daniels, acting as his own attorney against the same adversary, continued to pursue his personal vendetta with numerous additional frivolous court filings resulting in $15,472 in court-ordered sanctions, injunctions against new filings, and more disciplinary charges against him. A panel of the Iowa Supreme Court Grievance Commission conducted an evidentiary hearing and in thorough written findings determined that Daniels had repeatedly violated Iowa Rules of Professional Conduct 32:3.1 (prohibiting frivolous pleadings) and 32:8.4(d) (prohibiting conduct prejudicial to the administration of justice). The commission and the Iowa Supreme Court Attorney Disciplinary Board both recommend a six-month suspension along with other sanctions.1 On our de novo review, we find Daniels repeatedly violated both disciplinary rules. We suspend his license to practice for a minimum of six months and condition his reinstatement on payment of the $15,472 in court-ordered sanctions and compliance with the existing district court injunctions against further filings.

1An attorney member of the commission panel dissented from the six-month suspension and recommended a one-year suspension.

I. Background Facts and Proceedings.

Daniels, now age 84, obtained his veterinarian’s license in 1965 and his law license in 1973. Daniels farmed and practiced veterinary medicine for decades and did not begin practicing law for clients until 2002, when he first accepted court-appointed criminal defense work. His civil litigation experience primarily involves representing himself and Indian Creek Corporation (ICC), a corporation he wholly owned. The protracted litigation underlying this disciplinary proceeding has its genesis in 1998, when ICC lost title to real estate in Jasper County for failing to pay property taxes. See WSH Properties, L.L.C. v. Daniels, 761 N.W.2d 45, 47 (Iowa 2008). Daniels’s nemesis, John Holtz, and his corporation, WSH Properties, purchased the property at a sheriff’s sale. Id. After the sale, Daniels removed equipment Holtz claims was part of the tax sale, “including pens, gates, crates, waterers, and feeders.” Id. WSH brought a replevin action against ICC and Daniels. Id. WSH prevailed at trial, but the district court found the jury’s award was excessive and ordered a new trial or remittitur. Id. at 47–48. Daniels appealed, and the court of appeals held a new trial was required. Id. at 48. On further review, we affirmed the judgment in favor of WSH conditioned on the filing of the remittitur. Id. at 53.

Daniels did not relent. In October 2008, he filed another motion for a new trial in that case alleging newly discovered evidence of perjury and discovery violations. Daniels, 838 N.W.2d at 674. The district court denied his motion on the merits. Id. In April 2009, Daniels filed a “Renewed Motion for New Trial,” which the district court denied. Id. at 675. Daniels appealed, and while that

appeal was pending, Daniels filed another petition for relief. Id. That too was denied, and Daniels appealed yet again. Id. The court of appeals affirmed the district court in both appeals. Id. We publicly reprimanded Daniels for his frivolous filings in violation of Iowa Rule of Professional Conduct 32:3.1. Id. at 678–79.

Meanwhile, the State of Iowa won a judgment of $95,000 against Daniels and ICC for waste-handling violations on the Jasper County land. See Daniels v. State, No. 07–1275, 2008 WL 4569870, at *1 (Iowa Ct. App. Oct. 15, 2008). In 2006, a Holtz-owned business purchased the judgment, replacing the state as judgment creditor. Daniels v. Holtz, 794 N.W.2d 813, 815 (Iowa 2010). Holtz pursued collection. Id. On July 26, 2006, ICC’s stock was auctioned at a sheriff’s sale. Id. at 816. Holtz was the winning bidder. Id. Daniels sued to set aside the sale in February 2007, claiming that Holtz fraudulently chilled the bidding. See id. at 816–17. The district court granted Holtz summary judgment; Daniels appealed. Id. at 817. We concluded that a question of material fact existed whether Holtz’s actions chilled bidding. Id. at 824. We remanded that case for trial, id. at 825, and the district court set aside the sheriff’s sale, concluding that Holtz acted fraudulently, Daniels v. Holtz, No. 12–1522, 2013 WL 5743640, at *1 (Iowa Ct. App. Oct. 23, 2013). The district court denied Holtz’s motion for a new trial. Holtz appealed, and the court of appeals affirmed the ruling setting aside the sheriff’s sale. Id. at 2.

Holtz continued to pursue collection of his $95,000 judgment, and ICC’s shares went to a second sheriff’s sale, where they were again purchased by Holtz.

Daniels never successfully challenged the validity of the second sheriff’s sale.2 Instead, in numerous subsequent court actions, Daniels myopically continued to rely on his victory against Holtz in the first sheriff’s sale while ignoring the legal effect of the second sale.

Daniels testified that this litigation “has plagued me for 20 years” and “so consumed” him that he has not represented any other clients since 2016. He admitted that “it just took all my time and then some.” We recount highlights from what a federal judge aptly described as a “tortured history”3:

1. January 20, 2010: the district court denied Daniels’s petition for further relief after our 2008 ruling in WSH Properties, LLC v. Daniels, 761 N.W.2d 45, and stated:

Mr. Daniels seems never to run out of filings in a suit that was tried to a jury over five years ago . . . . Mr. Daniels’ efforts . . . have entered the realm of abuse of the legal system.

The district court entered the following injunction against Daniels:

IT IS FURTHER ORDERED, ADJUDGED and DECREED that defendant Curt N. Daniels, whether acting for himself or as a licensed attorney, is barred from making any further filings in this matter except a notice of appeal. The clerk of court is ordered to reject and refuse to file any pleading, motion or other paper which Daniels may attempt to file in this matter.

IT IS FURTHER ORDERED, ADJUDGED and DECREED that defendant Curt N. Daniels, whether acting for himself or as a licensed attorney, is barred from filing any new actions, in this court

2Although Holtz acquired lawful ownership of ICC in the second sheriff’s sale, Daniels

subsequently continued to file pleadings as counsel for ICC, notwithstanding the corporation’s inactive status and the absence of evidence that ICC retained him as its counsel.

3Daniels v. Holtz, No. 4:18-cv-00168-SMR-SBJ, 2019 WL 11317920, at *1 (S.D. Iowa

Feb. 8, 2019) (order granting motion to dismiss lawsuit filed by Daniels against Holtz).

or anywhere else, arising out of or relating to the facts of subject matter of this action.

2. July 14, 2014: the district court denied Daniels’s renewed request for a constructive trust and denied monetary awards for unjust enrichment or restitution.

3. April 6, 2016: the court of appeals affirmed the district court’s denial of Daniels’s requests on claim preclusion grounds. Daniels v. Holtz, No. 14–1290, 2016 WL 1366760, at *2 (Iowa Ct. App. Apr. 6, 2016).

4. June 2, 2016: we denied further review.

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